The Effect of Competence and Career Development on Employee Performance at PT Terang Parts Indonesia, South Tangerang, Banten

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FORMOSA NEWS

Employee performance at PT Terang Parts Indonesia is directly determined by the level of work competence and the clarity of career development provided by the company. This research, prepared by Syafira Zahra and Risza Putri Elburdah from the Faculty of Economics and Business, Universitas Pamulang, and published in August 2026, highlights the importance of human resource management to boost operational effectiveness amidst modern industrial competition.

The background of this research stems from the discovery of performance gaps in the field, where actual monthly production in 2024 only reached 6,950 units out of a 7,800-unit target, alongside a high number of defective products reaching 185 units, exceeding the 100-unit tolerance limit. In addition, the average employee performance evaluation was recorded at 75 out of 100, revealing substantial room for improving technical skills and career path clarity.

Data collection utilized an associative quantitative approach with a sample of 84 respondents from a population of 500 employees, calculated using the Slovin formula. Primary data were gathered through observation, interviews, and 1 to 5 Likert-scale questionnaires, which were then analyzed using multiple linear regression statistical tests via SPSS.

Data analysis yielded several key findings:

• Work competence was proven to have a positive and significant effect on employee performance, contributing 36.9%.
• Career development independently provided a positive and significant effect on performance, contributing 41.5%.
• The combination of competence and career development simultaneously explained 49.9% of the variance in employee performance, while the remaining 50.1% was influenced by other factors outside the research model.

Syafira Zahra and Risza Putri Elburdah emphasized that companies need to integrate competency-based training—specifically the mastery of digital systems and operational procedures—with promotion transparency and regular feedback from the human resources department. This step is considered essential to providing sustainable work motivation for employees, who are dominated by younger age groups.

Author Profiles

• Syafira Zahra: Researcher from the Faculty of Economics and Business, Universitas Pamulang, Indonesia.
• Risza Putri Elburdah: Researcher from the Faculty of Economics and Business, Universitas Pamulang, Indonesia.

Research Source

• Article Title: The Effect of Competence and Career Development on Employee Performance at Pt Terang Parts Indonesia, South Tangerang, Banten
• Journal Name: International Journal of Education and Life Sciences (IJELS), Vol. 4, No. 8, August 2026 (pp. 1395-1406)
• DOI: https://doi.org/10.59890/ijels.v4i8.89